The Dy.Commissioner of Income-Tax,Circle1(1), Nagpur V. M/s. Globle Fuels limited, Nagpur

ITSSA 258/NAG/2007

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 2274 (ITAT-NAGPUR)
• Duration Of Justice: 8 year(s) 8 month(s) 1 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 17-06-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 08-06-2016
• Assessment Year: misc
• Appeal Filed On: 16-10-2007
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A R NINAWE
• Keywords: Document seized; Additional evidence; Assessment record; Block assessment; Documents seized

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH: NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. I.T. (SS) A. NO. 258/NAG/2007 A . Y . : FROM 01/04/1990 TO 13/09/2000 THE DY. COMMISSIONER OF INCOME TAX , CENTRAL CIRCLE - 1(1), 313, 2 ND FLOOR, AAYAKAR BHAWAN, TELANKHEDI RD, CIVIL LINES, NAGPUR - 440001 VS. M/S.GLOBAL FUELS LIMITED 529, CLARK TOWN, KAMPTEE ROAD, KADBI CHOWK, NAGPUR - 440004 PAN : - A BOPP4 8 64G (APPELLANT) (RESPONDENT) APPELLANT BY SHRI A.R.NINAWE , DR RESPONDENT BY NONE DATE OF HEARING: 14 - 0 6 - 201 6 DATE OF PRONOUNCEMENT: - 17 / 0 6 /2016 O R D E R PER SHAMIM YAHYA , A .M. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT (A) DATED 2 7 . 07.2007 AND PERTAINS TO BLOCK ASSESSMENT PERIOD DATED 01.04.1990 TO 13.09.2000. THE GROUNDS OF APPEAL READ AS UNDER : - 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT (APPEALS) HAS ERRED IN ADMITTING ADDITIONAL EVIDENCE UNDER RULE 46A, WITHOUT GIVING ANY OPPORTUNITY TO A.O. AND D ELETING VARIOUS ADDITIONS MADE BY THE ASSESSING OFFICER. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED IN DELETING FOLLOWING ADDITIONS HOLDING THAT THE SOURCE OF THESE EXPENSES WERE VERIFIABLE FROM THE BOOKS OF ACCOUNT WHICH IS CONTRARY TO THE FACT THAT THE ASSESSEE HAS NOT MAINTAINED OR PRODUCED ANY BOOKS OF ACCOUNTS BEFORE THE ASSESSING OFFICER. (I) RS.7,71,848/ - ON ACCOUNT OF EXPENDITURE AS PER PAGE 44 OF SEIZED DOCUMENTS B - 1/14 TO ANNEXURE B FROM PARTY NO.R - 3. (II) RS.1,95, 617/ - SS ON ACCOUNT OF PAYMENT MADE TO HOTEL CREDIT CARD. 2 ITA (SS)A NO. 258/NAG/2007 (III) RS.50,000/ - ON ACCOUNT OF EXPENSES FOR TECHNICAL VIABILITY REPORT AS PER SEIZED DOCUMENT B - 1/35. (IV) RS.1,00,000/ - ON ACCOUNT OF PAYMENT TO THE VALUATION BOARD AS PER SEIZED DOCUMENT B - 1/35. (V) RS.18,58, 682/ - ON ACCOUNT OF VARIOUS EXPENSES AS PER SEIZED DOCUMENT B - 1/39. 2. WE HAVE HEARD THE LD. DR N ONE APPEARED ON BEHALF OF THE ASSESSEE . THE CASE WAS FIXED ON SEVERAL OCCASIONS , BUT NONE HAS APPEARED. W E NOTE THAT IN THIS CASE I NITIAL OBJECT ION OF REVENUE IS THAT THE LD. CIT(A) HAS ACCEPTED ADDITIONAL EVIDENCES IN VIOLATION OF 46A WITHOUT GIVING THE OPPORTUNITY TO AO. IN THIS REGARD WE NOTE THAT THE LD. CIT(A) IN THE 1 ST PARA OF ORDER ITSELF HAS MENTIONED THAT ASSESSING OFFICER SUBMITTED THE REMAND REPOR T ON THE SUBMISSION OF THE ASSESSEE. WE FURTHER NOTE THAT IN PAGE 3 THE LD. CIT(A) HAS NOTED THAT HE HAS TAKEN DUE COGNIZANCE OF THE REMAND REPORT SUBMITTED BY THE AO. 3. IN THIS REGARD, WE NOTE THAT ORDER OF THE LD. CIT(A) CLEARLY SHOWS THAT A NUMBER OF ADDITION EVIDENCES W ERE PRODUCED BEFORE THE LD. CIT(A). LD. CIT(A) S , ORDER NOWHERE MENTIONS THAT THESE SUBMISSIONS WERE REMANDED TO THE AO. IN THIS REGARD WE HAVE CALLED F O R THE FILE OF THE LD. CIT(A) . THE LETTER OF THE LD. CIT(A) ASKING FOR RE MAND REPORT DATED 23.08.2005 READ S AS UNDER : - DURING THE COURSE OF APPELLATE PROCEEDINGS IN THE AFORESAID CASE, THE APPELLANT HAS SUBMITTED THE FOLLOWING TO CONTEST THAT THE SEIZED DOCUMENT NO.A - 22 AND A - 23 DOES NOT PERTAIN TO GLOBAL FUELS LTD. 1. AFFIDA VIT DATED 21.07.2005 SIGNED BY DIRECTOR OF M/S. GLOBAL FUELS LTD. 2. THE CONTENT AND NATURE OF THE SEIZED DOCUMENT ANNEXURE A - 22 AND A - 23. DURING THE COURSE OF APPELLATE PROCEEDINGS, THE APPELLANT HAS ALSO SUBMITTED COPY OF THE ORDER U/S.263 DATED 12.01.2 005 IN THE CASE OF SHRI RAMSWAROOP BHATIA, WHEREIN THE SAID ORDER HAS BEEN SET ASIDE BY CIT(CENTRAL), NAGPUR WITH THE DIRECTION TO EXAMINE THE SOURCE OF RECEIPT OF RS.17,77,55,333/ - AS APPEARING IN THE SEIZED DOCUMENT NO.A - 22 AND A - 23 IN THE HANDS OF SHRI RAMSWAROOP BHATIA. 3 ITA (SS)A NO. 258/NAG/2007 IN THE LIGHT OF ABOVE, YOU ARE REQUESTED TO EXAMINE THE ISSUE AND CLARIFY THE STAND OF THE DEPARTMENT WITH RESPECT TO THE OWNERSHIP AND CONTENT OF THE SEIZED DOCUMENT A - 22 AND A - 23. THE REQUISITE REPORT MAY BE TAKEN ON PRIORITY SINCE IT IS A HIGH DEMAND AP PEAL AND MAY, THEREFORE, BE FURNISHED ON OR BEFORE 29.08.2005. 4. THE REMAND REPORT OF THE AO DATED 29.08.2005 HAS CLEARLY MENTIONED THAT THE ASSESSEE IS SHIFTING HIS STAND. THAT THE R ELEVANT RECORDS ON THE BASIS OF WHICH THE ASSESSMENT WAS MADE WILL BE PR ODUCED BEFORE THE LD.CIT(A) AS AND WHEN THE SAME IS REQUIRED. IN LIGHT OF THE ABOVE, WE ARE OF THE CONSIDERED OPINION THAT THERE ARE VARIOUS ADDITION AL DOCUMENTS ON WHICH THE LD. CIT(A) HAS PLACED RELIANCE . A LL OF THEM HAVE NOT BEEN REM ANDED TO THE AO. FUR THERMORE, F R OM THE REMAND REPORT IT IS EVIDENT TH AT LD. CIT(A) HAS NOT TAKEN INTO ACCOUNT THE ASSESSMENT RECORDS. IN THESE CIRCUMSTANCES IN OUR CONSIDERED OPINION, THE REVENUE S GROUND THAT T HERE IS A VIOLATION OF RULE 46A IS T ER RA F I R MA . ACCORDINGLY, IN THE INTEREST OF JUSTICE WE REMIT THE ISSUE RAISED TO THE FILE OF THE AO. THE AO IS DIRECTED TO CONSIDER THE ISSUE AFRESH AFTER GIVING THE ASSESSEE ANOTHER OPPORTUNITY HAVE BEING HEARD, AND TAKING INTO ACCOUNT THE SUBMISSION OF THE ASSESSEE BEFORE THE LD. CIT(A). 9 . I N THE RESULT , T HIS APPEAL FILED BY THE REVENUE IS STAND ALLOWED FOR STATISTICALLY PURPOSE . ORDER PRONOU NCED IN THE OPEN COURT ON THIS 17 TH DAY OF JUNE , 2016 SD/ - SD/ - (MUKUL K. SHRAWAT) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : - NAGPUR DATED: - 17 / 0 6 /2016 4 ITA (SS)A NO. 258/NAG/2007 COPY FORWARDED TO : 1. M/S.GLOBAL FUELS LIMITED 529, CLARK TOWN, KAMPTEE ROAD, KADBI CHOWK, NAGPUR - 440004 2. THE DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE - 1(1), 313, 2 ND FLOOR, AAYAKAR BHAWAN, TELANKHEDI RD, CIVIL LINES, NAGPUR - 440001 3. C.I.T. - (CENTRAL) , NAGPUR 4. CIT ( APPEALS) - I, NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR M.B.BODKHE/SR.P.S./A.M. SIR